Last Day to Apply for IPO of Hathway Investment Nepal; Oversubscribed 9.96 Times from 10.10 Lakh Applicants

Hathway Investment Nepal Limited is closing the issue of 24,27,750 unit shares with a face value of NPR 50 per share to the general public from today i.e. on 25th Bhadra. The issue opened on 21st Bhadra, 2080.

The issued capital of the investment company is Rs. 1.17 Arba of which 12.50% i.e. 29,25,000 unit shares is for the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 292,500 unit shares were allocated for Nepalese citizens working abroad, whereas 2% i.e. 58,500 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 146,250 units have been set aside for the mutual funds. The remaining 24,27,750 units are for the general public.

Global IME Capital Limited is appointed as the issue manager. Applications can be placed for a minimum of 20 units and a maximum of 100,000 units.

The issue will raise Rs. 14.625 crores for the company since each share is being issued at a face value of Rs. 50 per share. The current paid-up capital of the company is Rs. 1.023 Arba which will reach Rs 1.17 Arba after IPO allotment.

According to CDSC, 10,10,034 applicants have applied for a total of 24,192,840 units worth Rs. 1.21 Arba. Thus, the issue has already been oversubscribed by 9.96 times so far.

ICRA Nepal has assigned a long-term rating of [ICRANP] LBBB- (pronounced ICRA NP L triple B minus) to the long-term bank limits and reaffirmed the short-term rating of [ICRANP] A3 to the short-term bank limits of Hathway Investment Nepal Limited. ICRA Nepal has also reaffirmed the issuer rating of the company at [ICRANP-IR] BBB- (pronounced ICRA NP issuer rating triple B minus).

Hathway Investment Nepal Ltd. (HINL) is Nepal’s first private-equity investment company that has impacted investment objectives. HINL invests in all sectors which has potential and has a positive impact with solutions to existing problems employment creation or contribution to the local economy. The company’s investment combines risk capital financing with advisory support to help the investee develop systems, processes, standards, relationships, networks, and governance frameworks, if necessary. Founded in 2009, Hathway is a provider of private equity to the capital market, tourism, infrastructure, financial sectors, and SMEs. HINL’s renewed focus on equity investment is to support SMEs throughout Nepal with a catalyst to change management.